12 May 2011 | Lindsay Clark
procurement team at Surrey CountyCouncil has achieved £21.5 million savings in
the financial year 2010-11 and has set ambitious targets for the year ahead.
Forzani, head of procurement and commissioning at the local authority told SM the council expects to make savings
of between £25-30 million in the next financial year as procurement gains
greater influence on spending decisions.
2008, Surrey’s procurement function was run from within the business units with
about 20 people. Since then, the team has been centralised and been
restructured twice, each time based on a business case justified by costs
savings, he said.
have just delivered £21.5 million cashable revenue savings, in the financial
year just finished – that’s not a bad return on investment and we are targeting
£25-30 million savings this year,” Forzani said.
the team is run with 49 full-time-equivalent procurement professionals.
the team has now been successful in saving money, it has been a struggle to
gain more influence within the business, a typical challenge for the public
sector, Forzani said.
think that although procurement as a profession has come to the fore in the
private sector and is seen as a key aspect of good financial management,
business change and making efficiencies, that has been quite slow to come over
to the public sector, and even where it has, we have probably sat in a
know a lot of public sector procurement people struggle to get their
organisations to understand the difference between purchasing, running tenders
and placing orders and doing proper strategic procurement and category
benchmarking against other organisations gave the team the credibility to
challenge assumptions in business units, and led to successes in highways
maintenance contracts, such as their 2010 CIPS SM award winning streetlight-buying strategy.
Once department managers could see the savings procurement was achieving, it
helped the team achieve greater influence in other areas, such as social care, Forzani
Forzani will be speaking at The PublicProcurement Show,
where Supply Management is an
official media partner, in London on 14-15 June addressing topic of leadership